"Ashiana Housing launched phase 1 of Gulmohar Gardens of 4.1 LSF in May'13 and saw a bookings of 1.7 LSF in almost a month's time. Total saleable area of this project is 11.34 LSF. It has also launched Ashiana Town at Thada, Bhiwadi having a total saleable area of 39 LSF, largest project of the company so far. With a huge project pipeline and launch of two big projects in Q1FY14 its bookings are expected to attain the mark of 23 LSF in FY14 from current 18.7 LSF (FY13). While the EAC is likely to increase to 19 LSF in FY14 from current 12.1 LSF (FY13)."

"The company's revenue and profit for this quarter looks frail as the company is undergoing a change in accounting policy from POCM to contract completion method. As mentioned in our earlier report, Area Booked, EAC and operating cashflow are better parameters to guage the performance of the company as earnings are likely to be lumpy in short term. Keeping in mind the ongoing projects saleable area of 97.3 LSF, EAC target of 19 LSF and area booking target of 23 LSF for FY14 we believe that the company is likely to grow at a CAGR of 58 percent for the next two years. Being a net debt free company with relatively stable cashflows the stock is attractively trading at 3.8x times its FY15E EPS of Rs.51.8. We maintain our positive stance on the company and recommend BUY with a price target of Rs 322," says Sushil Finance research report.

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